There have been a lot of articles in the news recently about the status of the property market in the Algarve. Many media reports and estate agency newsletters are quoting large percentage increases in real estate prices, but they are frequently vague about area or type of property. Often statistics are quoted based on the advertised prices on certain local property portals, not the actual sales price.
Different segments of the market are improving at different rates, and while some areas in Portugal (including the Algarve) are seeing increases in sale price and volume of sales, others are not.
It’s all well and good to report a 20% increase in property prices. However, when on closer inspection the majority of those properties are small residential apartments in high density urban areas that have gone up in price from an average of 50,000 to 60,000 euros that tends to put the headline-grabbing statistics into a different light.
Based on our own experience we can confirm that the volume of sales in our areas of coverage (from Lagoa, Silves and westwards) have certainly increased in the last 18 months. We can also confirm that prices have been increasing. However the largest increases have been concentrated at the more affordable end of the market. We are certainly finding it very difficult to now find quality properties to list for sale under 300,000 euros.
As part of our service, we work with our vendors to periodically reassess their asking price and, when appropriate, suggest an increase that is in line with the improving market.
